Who can be sued? Knowing Receipt is an “equitable claim” for personal relief against a recipient of tainted assets. It is often deployed in circumstances of bribery and corruption, particularly in claims to recover stolen money or assets. It is also available against companies, trusts and associates that have received proceeds for the dishonest agent. Its essence is to make the recipient of the property a “constructive trustee” and impose a liability to account to the claimant for the trust property, or to pay the claimant its value.

When does it apply? It is particularly helpful in circumstances where it is not possible to prosecute the third party recipients because they do not have the requisite criminal state of knowledge or participation, but they have enough knowledge of facts or circumstances which taint the assets they have received to make them a knowing recipient and the successful target of a claim. It is also helpful where the original assets have been dissipated and are no longer identifiable, or because the assets have been transferred on to a “bona fide purchaser for value without notice.”